Homeowner of the Future
Monday, July 25, 2016
Posted by: Matthew Craig
The homeownership rate for Millennials may be low, but the they sure love watching about it. According to an interesting article by the Boston Globe, Millennials are flocking to HGTV's shows, with the 21-34 age group viewership growing 16 percent year-over-year. While some posit the low percentage of Millennial homeowners is due to the desire to live in cities, and forego the hassles of home upkeep, this lends credence to the opposite argument that Millennials do want to be homeowners, but are unable to do so thanks to economic constraints.
Despite what Time magazine says about Millennials as the "Me Generation" (a term ironically coined describing what we now call the Baby Boomer generation by Tom Wolfe in 1976), there is no denying the financial deck is not currently stacked in the younger generation's favor, which leaves less money for things like purchasing a home. The median income today of a 30 year old is the equivalent of a 30 year old in 1984, when accounting for inflation, despite being 50% more likely to have a college degree, and work in an economy that is 70% more productive.
What does this mean? It means that Millennials, the now largest generation in history, is not one to de-emphasize when it comes to crafting plans for your company's future services or products. Millennials are showing the same desires the previous generations did, and when they gain the ability to, they will likely spend big, playing catch up. After all, Millennial homeowners are showing some of the highest rates of expected home improvement project plans, according to HIRI data.